Question ThreeIn a perfectly competitive industry, the market price is GH25. A firm is currently producing 10,000 units of output, its average total cost is GH28, its marginal cost is GH20, and its average variable cost is GH20. Given these facts, indicate whether the following statements are true or false and explain:

In a perfectly competitive industry, the market price is CH 25. A firm is currently producing 10,000 units of output, its average total cost is GH28, its marginal cost is GH20, and its average variable cost is GH20. Given these facts, state whether the following statements are true or false and explain: a. The firm is currently producing at the minimum average variable cost. b. The firm should produce more output to maximize its profit. c. Average total cost will be less than GH28 at the level of output that maximizes the firm's profit. Hint: Assume normal Ushoped cost curves for this